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Stock Market Daily Updates: 20 August 2021

In the coming session, as the market has already witnessed a sharp run-up and valuations appear to be quite stretched at the current level, profit-booking at these levels cannot be ruled out and therefore traders should be cautious at these levels.

Photo Credit :

1575809288_yq1JW0_BSE_India.jpg

Dear Trader…

As expected, the Indian stock market bullish run stopped at a red mark due to unprofitable selling from higher levels, The Nifty couldn't sustain in the higher territory and faced sharp selling pressure there and it aggravated as the day progressed. The stock market is currently witnessing a new historic boom in the steady influx of foreign funds, but there is no denying that the boom is now at a risky stage. According to the report, we are currently in a challenging time. Investors should be cautious considering being in the stage.

FII-foreign institutional investors, foreign portfolio investors-FPIs, on Wednesday saw a net sold of Rs 595.32 crore in the cash segment. A total of Rs 10152.95 crore was sold against a total purchase of Rs 9557.63 crore. DII-domestic institutional investors today saw a net sold of Rs 729.49 crore in the cash segment. A total of Rs 5455.88 crore was sold against a total purchase of Rs 4726.39 crore.

The liquidity-driven rally which has been heavily dependent on foreign funds and we reiterate our positive yet cautious approach citing overbought conditions and suggest limiting leveraged positions. It’s prudent to stick with a stock-specific trading approach and using dips to add quality stocks, traders should align their position according to the market trend and avoid contrarian trades unless we see some sign of a reversal in price itself.

In the coming session, as the market has already witnessed a sharp run-up and valuations appear to be quite stretched at the current level, profit-booking at these levels cannot be ruled out and therefore traders should be cautious at these levels.

Ø INDEX MOVEMENT - 20.08.2021

  • Nifty Future closed @ 16572 as on 18.08.2021..!!

Dear Traders,

Nifty Future has resistance at 16577 – 16606 Point; above which other resistance levels are at 16636 - 16676 Point with highly Volatile Trend,

Nifty Future has Downside support levels are at 16505 – 16474 Point; below16474 Point, other support levels are at 16434 – 16404 Point.

I am positive for the next bullish trend only above @ 16676 Point but be with the trend. Let the market decide further moves. 

As we are saying from many days, Buying is suggested in falls only...and it’s still a better strategy in the given Scenario, regarding Long term positions, it is preferable to remain cautious now...!!

If Nifty Future crosses @ 16676 Point, again then the upper side target is quite high and it may touch @ 16707 Point in the short term...!!!

  • Bank Nifty Future closed @ 35601 as on 18.08.2021..!!

Dear Traders,

Bank Nifty Future has resistance at 35575 – 35707 Point; above which other resistance levels are at 35838 – 36006 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 35474 – 35373 Point; below35373 Point, other support levels are at 35202 – 35008 Point.

I am positive for the next bullish trend only above @ 36006 Point but be with the trend. Let the market decide further moves. 

As we are saying from many days, Buying is suggested in falls only...and it’s still a better strategy in the given Scenario, regarding Long term positions, it is preferable to remain cautious now...!!

If Bank Nifty Future crosses @ 36006 Point, again then the upper side target is quite high and it may touch @ 36088 Point in the short term...!!

Ø Trading Idea for the derivative stocks….

  • LARSEN LTD @ Positive Trend @ Rs 1606 with Stoploss of Rs @ 1588 for the Target near @ Rs 1647 - 1660 in short term…..!!!
  • HDFC BANK @ Positive Trend @ Rs 1490 with Stoploss of Rs @ 1477 for the Target near @ Rs 1537 – 1550 in short term…..!!!
  • HAVELLS INDIA @ Positive Trend @ Rs 1217 with Stoploss of Rs @ 1208 for the Target near @ Rs 1247 – 1260 in short term…..!!!
  • RAMCO CEMENT @ Positive Trend @ Rs 977 with Stoploss of Rs @ 970 for the Target near @ Rs 1008 – 1012 in short term…..!!!
  • INDIGO @ Negative Trend @ Rs 1733 with Stop loss of Rs @ 1740 for the Target near @ Rs 1686 – 1670 in short term...!!!
  • ESCORTS LTD @ Negative Trend @ Rs 1253 with Stop loss of Rs @ 1260 for the Target near @ Rs 1202 - 1190 in short term...!!!
  • VOLTAS LTD @ Negative Trend @ Rs 1008 with Stop loss of Rs @ 1015 for the Target near @ Rs 973 - 960 in short term...!!!
  • ADANI PORT @ Negative Trend @ Rs 723 with Stop loss of Rs @ 730 for the Target near @ Rs 696 – 686 in short term...!!!

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Nikhil Bhatt | Research Analyst - SEBI

The author is a well established entrepreneur having a more than 16 years of experience in the field of stock market and financial management.

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